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2024_06_11_ssTuesday, June 11, 2024 Board of Directors Study Session Time: 8:00 a.m. Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626 *** The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary. *** To participate in the meeting by computer: 1. Copy and past the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 825 2896 6090 3. Click "Join." *** To join the meeting with a mobile device: 1. Download the Zoom app at the Google Play Store (for Android devices) or the App Store (for Apple devices) 2. Open the Zoom app. Select "Join a Meeting." 3. Enter Zoom Meeting ID. Select "Join Meeting." *** To join the meeting by phone: 1. Call 1-669-900-6833. 2. You will be asked to enter the Meeting ID number. Dial 825 2896 6090# 3. Lastly, you will be asked to enter your Participant ID. Press the # symbol again to bypass this step. *** Public Comments: Members of the public can submit any comments in real time during the meeting or prior to the meeting in writing for the Board of Directors' consideration by sending them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will be made part of the official public record of the meeting. *** Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained from the District Clerk's Office. *** In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject :1. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence such determination shall be the permission required by law.) Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Procedural Public Content Michael Scheafer, President Arlene Schafer, Vice President Arthur Perry, Secretary Robert Ooten, Vice Secretary Brett Eckles, Director B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject :1. Public Comments Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Procedural C. ITEMS OF STUDY Subject :1. Receive and File May 2024 Code Enforcement Officer Report Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Receive and File Public Content To: Board of Directors Via: Scott Carroll, General Manager From: David Griffin, Code Enforcement Officer June 11, 2024Date: Subject: Receive and File May 2024 Code Enforcement Officer Report Summary This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti on trash carts, and trash container enforcement. For the month of May 2024, the CMSD Code Enforcement Officer (CEO) focused his efforts on patrols in various parts of the community. The goal is to identify and deter instances of scavenging and residential trash carts left within the public view. Recommendation That the Board of Directors receives and files this report. Analysis In the month of May, Officer Griffin observed 3 individuals searching in trash carts on Gisler, New Hampshire, and Babb St. All individuals were advised of the District's scavenging law and given verbal warnings before they went on their way. In the month of May, Officer Griffin issued 183first warnings notices (yellow tag) to residential properties for having their trash carts in public view. Officer Griffin did not observe graffiti on trash carts in the months of May. To address resident concerns, Officer Griffin is patrolling streets by 6:30 a.m. Legal Review 1. 2. 3. 4. 1. 2. Not applicable. Environmental Review Code enforcement activities and reporting are not a disturbance of the environment similar to grading or construction and do not constitute a project under CEQA or the Districts CEQA Guidelines. Financial Review Officer Griffins' activities are funded in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 11, 2024,Board of Directors Study Session meeting at District Headquarters and posted on the Districts website. Alternative Actions Direct staff to report back with more information. File Attachments Code_Enforcement_Officer_Report_May_2024.pdf (488 KB) C. ITEMS OF STUDY Subject :2. Consider Adjustment to FY 2024/25 Solid Waste Rate Recommendation Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Action Recommended Action :That the Board of Directors consider an adjustment to the FY 2024/25 solid waste rate recommendation. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Marissa Pereyda, Management Analyst II Date: June 11, 2024 Subject:Consider Adjustment to FY 2024/25 Solid Waste Rate Recommendation Summary On April 22, 2024, the Board of Directors took the following actions: Received and filed the Final Solid Waste Rate Study by NBS Finance Group; and Accepted the rate recommendation identified in the study; and Directed staff to send notices to property owners receiving solid waste services regarding a public hearing to consider proposed maximum rates for solid waste services, pursuant to the requirements of Proposition 218; and Set a Proposition 218 Public Hearing for Monday, June 24, 2024, at 4:30 p.m. at District Headquarters to consider adopting new solid waste rates. Following the Board Meeting on April 22, 2024, staff asked NBS Government Finance Group to revise the rate recommendation based on two considerations: On May 28, 2024, the Board of Directors approved a 3.1% Consumer Price Index (CPI) increase to CR&R's rates. Until the three-cart collection system begins in October 2024, the District will pay CR&R for the current two-cart rate. Based on these adjustments, staff is recommending a FY 2024/25 solid waste rate adjustment of 13.70% instead of the previously recommended adjustment of 16.80%. 1. 2. 1. 2. Recommendation That the Board of Directors consider an adjustment to the FY 2024/25 solid waste rate recommendation. Analysis The Final Solid Waste Rate Study and rate recommendationaccepted by the Board on April 22, 2024, was based on: An assumed 5% annual CPI adjustment to CR&R's rates, since the annual CPI adjustment is capped at 5%. The CR&R three-cart rate structureapplying to all 12-months of FY 2024/25. The rate table below outlines the CR&R rates included in the Final Rate Study rate recommendation. The occupancy rate is charged per account, per month and landfill, recycling, and organics rates are charged per ton. CR&R Rates 3.19.2024 Current 2023/24 Rates FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Occupancy $11.1864 $17.3600 $18.2280 $19.1394 $20.0964 $21.1012 Landfill (Black cart)$59.35 $62.32 $65.43 $68.71 $72.14 $75.75 Recycling (Blue cart)$15.54 $16.32 $17.13 $17.99 $18.89 Organics (Green cart)$81.66 $85.74 $90.03 $94.53 $99.26 $104.22 The rate table below outlines the revised CR&R rates used to calculate the revised rate recommendation. The new rates are based on two factors: The FY 2024/25 approved CPI adjustment is 3.10%. CR&R will bill the District at the current two-cart rate for FY 2024/25Q1 (July - September). When the three-cart collection systems begins in October 2024, CR&R will bill the District at the new three-cart rate structure. The table includes a different rate for FY 2024/25 Q1 and FY 2024/25 Q2 - Q4. REVISED CR&R Revised Rates Current 2023/24 Rates FY 2024/25 Q1 FY 2024/25 Q2-Q4 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Occupancy $11.1864 $11.5332 $17.0527 $17.9054 $18.8006 $19.7407 $20.7277 Landfill (Black cart)$59.35 $61.19 $61.19 $64.25 $67.46 $70.83 $74.38 Recycling (Blue cart)$15.27 $16.03 $16.83 $17.68 $18.56 Organics (Green cart)$81.66 $84.19 $84.19 $88.40 $92.82 $97.46 $102.34 As a result of the adjustment to CR&R's rates, the District's net revenue requirement in FY 2024/25 is estimated to decrease from $7,615,643 to $7,259,799. This decrease will allow the Board to consider a rate lower than the maximum FY 2024/25 rate included in the Proposition 218 Notice sent to District solid waste customers. The rate recommendation provided in Notice is included below. Rate Recommendation - Prop 218 Notice Service Type Current Rates Proposed Rates FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Annual Rate Increases 16.80%9.00%7.00%7.00%5.00% Annual Rates Flat Rate $ 289.20 $ 337.68 $ 368.07 $ 393.84 $ 421.40 $ 442.47 Monthly Rates Flat Rate $ 24.10 $ 28.14 $ 30.67 $ 32.82 $ 35.12 $ 36.87 NEW Recommended Rate Adjustment Based on the revised analysis conducted by NBS in partnership with District staff, the recommended rate adjustments are 14.00% (FY 2024/25), 9.00% (FY 2025/26), 7.00% (FY 2026/27), 7.00% (FY 2027/28), and 5.00% (FY 2028/29) in annual net These annualrevenue increases, with a cumulative increase of 49.40% over five years to the District's net revenue requirements. revenueincreases equate to the annualrateincreases outlined below. These proposed rates reflect the minimum revenue adjustments needed to keep pace with projected expenses and to maintain the minimum recommended reserve targets for the solid waste fund. The rate increases outlined below set the maximum rate increase allowed annually. The District should monitor the new rates to ensure that the revenue generated is sufficient to meet the annual revenue requirements. At the same time, if the revenue generated exceeds projections and a rate increase of the proposed rate adjustment is not necessary, the Board can approve a lesser rate increase. Service Type Current Rates Proposed Rates FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Annual Rate Increases 13.70%9.00%7.00%7.00%5.00% Annual Rates Flat Rate $ 289.20 $ 328.92 $ 358.52 $ 383.62 $ 410.47 $ 431.00 Monthly Rates Flat Rate $ 24.10 $ 27.41 $ 29.88 $ 31.97 $ 34.21 $ 35.92 Difference between Prop 218 Notice Rate and New Rate Recommendation Annual Solid Waste Rates Monthly Solid Waste Rates Fiscal Year Prop 218 Rate New Rate Difference Fiscal Year Prop 218 Rate New Rate Difference FY 2024/24 $ 337.68 $ 328.92 ($8.76)FY 2024/24 $ 28.14 $ 27.41 ($0.73) FY 2025/26 $ 368.07 $ 358.52 ($9.55)FY 2025/26 $ 30.67 $ 29.88 ($0.80) FY 2026/27 $ 393.84 $ 383.62 ($10.22)FY 2026/27 $ 32.82 $ 31.97 ($0.85) FY 2027/28 $ 421.40 $ 410.47 ($10.93)FY 2027/28 $ 35.12 $ 34.21 ($0.91) FY 2028/29 $ 442.47 $ 431.00 ($11.47)FY 2028/29 $ 36.87 $ 35.92 ($0.96) The Proposition 218 Notice sent to District customers, and attached to this report for reference, sets the solid wastemaximum rates that the Board may approve. Since the new rate recommendation is lower than the maximum rate from the Proposition 218 Notice, no additional Proposition 218 noticing is required. Legal Review Legal review is not required. District Counsel reviewed the report dated April 22, 2024, authorizing the Proposition 218 Notice regarding a public hearing to consider proposed maximum solid waste rates and setting a Public Hearing for Monday, June 24, 2024, at 4:30 p.m. Environmental Review Consideration of the solid waste rate is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 "Projects" does not include... C. Continuing administrative or maintenance activities. Financial Review The recommended solid waste rate adjustment for the next five fiscal years is 14% (FY 2024/25), 9% (FY 2025/26), 7% (2026 /27), 7% (FY 2027/28), and 5% (FY 2028/29) in annual net revenue increases, with a cumulative increase of 49.40% over five years to the District's net revenue requirements. If the proposed rate increases are not implemented, the District would have a 1. 2. 1. projected solid waste fund deficit of approximately $3.3 million in FY 2028/29. Based on projected increases in operating expenses, the District's minimum solid waste operating and maintenance reserve target (30%) will increase to approximately $3.26 million in FY 2028/29. With the proposed rate increase, the District's solid waste operating and maintenance reserve would be approximately $3.3 million inFY 2028/29. The revised financial plan prepared by NBS Government Finance Group is attached to this report. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 11, 2024, Board of Directors Regular Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Revised_Rates_Financial Plan_06.11.2024.pdf (871 KB) Solid_Waste_Rates_Proposition_218 Notice.pdf (428 KB) C. ITEMS OF STUDY Subject :3. Classification and Compensation Study Outcome Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Discussion Goals :7.7 Human Resources Management - Provide competitive compensation, benefits package and incentives Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Dyana Bojarski, Administrative Services Manager Date: June 11, 2024 Subject: Classification and Compensation Study Findings and Recommendations Summary Staff presented the findings of the Districts Classification and Compensation Study to the Board of Directors at the May 14, 2024, Study Session where the Board directed staff to come back with additional information. Average percentile rank of agencies excluding cities. 5-year projected cost analysis. Recommendation That staffbring thisback to the June 24,2024 Board of Directors meeting for consideration of approving the classification and .compensation study recommendations Analysis The District contracted with Ralph Andersen and Associates to perform a comprehensive classification and compensation study in support of the Districtsstrategic goal of providing a competitive benefits package that enhances employee recruitment and retention, while promoting employee satisfaction. At the May 14, 2024, Study Session, staff presented the Board with the results of the Study. At that meeting, the Board directed staff to come back with the following additional information: 1. 2. Average percentile rank of agencies excluding cities. 5-year projected cost analysis. As reflected below, compared to other Special Districts in Orange County, the Costa Mesa Sanitary District ranks the lowest in average percentile relationship to other Special Districts in Orange County.The Special Districts included as comparison agencies are the District's labor market competitors in the areas of recruitment and retention. Based upon the Consultant's findings, the following recommendations were proposed at the May 14, 2024 Study Session. Classification Recommendations Changes to the current class titles (Table 1- Master List of Class Titles). Wastewater Department -Wastewater Superintendent It is recommended that this title change to Wastewater Maintenance Manager. This is a minor title change to create consistency with other department management titles within the District, i.e. Finance Manager and Administrative Services Manager. SCADA Technician/Industrial Electrician-It is recommended that this title change to SCADA Technician. This is a minor title change, as Industrial Electrician is not necessary in the title. Wastewater Maintenance Lead Worker-It is recommended that a new classification of Wastewater Maintenance Lead Worker be created with responsibility for leading, training, overseeing, and participating in the more complex and difficult work of a crew responsible for all District collection system installation, inspection, preventive, and corrective maintenance and repair activities. In addition, this classification will require a Grade III Wastewater Collection System Operator Certificate. Employee Allocation/PromotionRecommendations The Employee Allocation List clearly identifies the linkage of the current plan to the proposed classification system by summarizing recommendations for each individual employee (Table 2- Allocation List). District Clerk/Public Information Department From Management Analyst II to Senior Management Analyst (Gina Terraneo) This position performs a variety of advanced journey-level diverse, specialized, and complex administrative and analytical duties for a variety of District functions and programs within the District Clerk/Public Information Office including Clerk functions as well as in the areas of public information and outreach, emergency operations management, and information technology programs and activities. In order to more accurately reflect the diverse, specialized, and complex administrative and analytical duties assigned to this position, it is recommended that this position be re-allocated to the Senior Management Analyst classification. From Administrative Assistant I to Management Analyst I (Angela Colunga) This position independently performs a variety of complex journey level administrative and office support duties for both the District Clerks Office as well as the Solid Waste Department. In order to more accurately reflect the duties and responsibilitiesof this position, it is recommended that this position be re-allocated to the AdministrativeAssistant II classification. However, Staff is recommending this position be re-allocated to Management Analyst I. Solid Waste Department From Management Analyst II to Senior Management Analyst (Marissa Pereyda) This position performs a variety of advanced journey-level diverse, specialized, and complex administrative and analytical duties within the Solid Waste Department including overseeing and administering the solid waste contract for the District. Further, this position is responsible for overseeing code enforcement activities at the District including direct supervision over the Code Enforcement Officer. In order to more accurately reflect the diverse, specialized, and complex administrative and analytical duties assigned to this position, it is recommended that this position be re-allocated to the Senior Management Analyst classification. Wastewater Department From SCADA Technician/Interim Wastewater Maintenance Supervisor to Wastewater Maintenance Supervisor (Tony Gomez) Based on direction and feedback from the District, it is recommended that Tony Gomez be re-allocated to the Wastewater Maintenance Supervisor classification overseeing Pump Stations. From Wastewater Maintenance Worker III/Interim Wastewater Maintenance Supervisor to Wastewater Maintenance Supervisor (Jesse Blakely) Based on direction and feedback from the District, it is recommended that Jesse Blakely be re-allocated to the Wastewater Maintenance Supervisor classification overseeing Collections. From Wastewater Maintenance Worker III/Interim Wastewater Maintenance Supervisor to Wastewater Maintenance Lead Worker (Joel Ortiz) Based on direction and feedback from the District, it is recommended that Joel. Ortiz be re-allocated to the new Wastewater Maintenance Lead Worker classification . COMPENSATION PHASE The second phase of the study focused on compensation. With regards to a compensation survey, there are two components of compensation: salaries and benefits, which combined are referred to as total compensation. Source documents included position control documents, job descriptions, salary schedules, benefit summaries and MOUs.Base salary and major benefit data were considered.The development and modification of the Districts pay plan involved: A comparison of District salary ranges with salary ranges for comparable jobs in agencies that represent the labor market. An analysis of the Districts major benefits using a total compensation model. This analysis identifies areas of strengths and weaknesses in the Districts benefits compared to market practices. Salary range analysis using a combination of market data and a review and analysis of internal salary relationships. After careful analysis, which included pay structure trends and base salary analysis, the calculation of the survey data mean, median, and selected percentiles was calculated. Internal pay relationships were also analyzed in order to attain sound and equitable relationships for the compensation(Attachment "A" - Labor Market and Salary Survey). In assessing classifications with comparable agencies, classifications with similar duties and responsibilities were matched. However, not all classifications were matched, only those that are most common in the market, also known as benchmarks. Benchmarking is an industry best practice. It helps to provide greater stability and reduces skewing. It captures key market trends and ignores less reliable data. Benchmark classes are set to Market Median -50 Percentile (Attachment "B" - Salary .Recommendations) Cafeteria Plan Benefits Bucket th The Districts combined employer contribution amount for health, dental, and vision is lower than the market median monthly amount of $2,008 for an employee plus two or more dependents. CalPERS Health Plan rates have steadily been increasing each year. In 2024 rates increased 10.77%. The preliminary 2025 health plan rates will not be available until June 2024.Table 3 reflects the monthly contribution amount of comparison agencies. To align total compensation with the market, staff is recommending an increase to the Districts benefit bucket contribution allowance. Staff recommends increasing the cafeteria plan amount for the Employee + 2 or more tier. The Employee Only and Employee + 1 tiers are currently within the market rate. Cafeteria Plan Allowance Employee Only Employee + 1 Employee + 2 or more Current Monthly $1,200 $1,450 $1,700 Proposed Monthly No change No change $1,875 Longevity Pay The District seeks to acknowledge employees who have dedicated significant service time and reached the top of their positions salary range. Currently, these employees do not qualify for merit increases during annual performance evaluations, even if they meet or exceed all performance expectations and goals.To enhance employee recruitment and employee retention, staff recommends implementing longevity pay for employees who are at the salary cap for their roles. Longevity pay rewards employees for their service tenure, encouraging them to stay with the organization longer. The criteria for the longevity pay structure is outlined below. Annual Longevity PayAmount Criteria 1% of current annual salary Performance has met expectations for the year and achievement of 1 performance goal 2% of current annual salary Performance has met expectations for the year andachievement of 2performance goals 3% of current annual salary Performance has met expectations for the year andachievement of 3 performance goals Standby Pay For each day on standby duty where an employee is assigned to respond to emergency locations that occur after regular working hours, both the and the are paid a flat rate of $50 a day.Primary Standby Person Secondary Standby Person Based upon the survey results of comparison agencies, the District ranks among the lowest for standby pay.(Attachment E Other Benefits) Staff is recommending an increase for standby duty pay from the flat rate of $50 per day ($350/week) to the flat rate of $75 per day ($525/week) for the The responds in the field only when they are calledPrimary Standby Person.Secondary Standby Person out by the . Staff is recommending the rate for the remain at the current rate ofPrimary Standby Person Secondary Standby Person $50 per day. Current Per Day Proposed Per Day Primary Standby Person $50 $75 Secondary Standby Person $50 $50 Recommendation That staffbring thisback to the June 24, 2024, Board meeting for consideration of approving the classification and compensation study recommendations. Legal Review Not applicable. Environmental Review A classification and compensation study is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District's guidelines. Financial Review Below is the five-year comparison of the salaries and benefits current budget vs Classification and Compensation Study recommendations. Please note that the projected five-year analysis focused on only employee's salaries and benefits (medicare, CalPERS, retirement health savings (RHS)). The employer pays a certain percentage for Medicare, CalPERS and RHS based on the employees salary amount. The FY 2024-25 COLA in columns D and J shown in the table below are adjusted from 5% to 3.4%. The future fiscal years are assumed a 5% COLA for each year. Projected Salaries and Benefits Projected Salaries and Benefits Class & Comp Recommendations Fiscal Year 2024-25 2025-26 2026-27 2027-28 2028-29 2024-25 2025-26 2026-7 2027-28 Cost of Living Adjustment 3.4%5%5%5%5%3.4%5%5%5% Regular Salaries $ 1,799,000 $ 1,930,000 $ 2,051,000 $ 2,184,000 $ 2,324,000 $ 1,850,000 $ 2,025,000 $ 2,206,000 $ 2,374,000 Part-Time Salaries 55,000 61,000 65,000 70,000 75,000 56,000 61,000 68,000 74,000 Swr Maint Reg Salaries 917,000 979,000 1,044,000 1,108,000 1,169,000 963,000 1,071,000 1,163,000 1,259,000 Total Regular Salaries 2,771,000 2,970,000 3,160,000 3,362,000 3,568,000 2,869,000 3,157,000 3,437,000 3,707,000 Medicare - Employer 32,000 34,000 36,000 37,000 40,000 32,000 35,000 38,000 41,000 Medicare - Swr Maint ER 15,000 16,000 17,000 18,000 19,000 16,000 18,000 19,000 20,000 Total Medicare 47,000 50,000 53,000 55,000 59,000 48,000 53,000 57,000 61,000 PERS - Employer 197,000 209,000 220,000 233,000 246,000 201,000 217,000 235,000 250,000 PERS - Swr Maint ER 104,000 109,000 115,000 122,000 128,000 108,000 118,000 127,000 137,000 PERS - Employee 14,000 15,000 17,000 17,000 18,000 14,000 17,000 17,000 18,000 PERS - Swr Maint EE 22,000 23,000 23,000 25,000 26,000 22,000 25,000 26,000 28,000 Total PERS 337,000 356,000 375,000 397,000 418,000 345,000 377,000 405,000 433,000 Deferred Medical - RHS 19,000 20,000 21,000 23,000 24,000 20,000 21,000 23,000 25,000 Swr Maint RHS 10,000 10,000 11,000 12,000 12,000 10,000 11,000 12,000 13,000 Total RHS 29,000 30,000 32,000 35,000 36,000 30,000 32,000 35,000 38,000 Total Salaries & Benefits $ 3,184,000 $ 3,406,000 $ 3,620,000 $ 3,849,000 $ 4,081,000 $ 3,292,000 $ 3,619,000 $ 3,934,000 $ 4,239,000 As shown in the chart below, if the Board of Directors approves the Classification and Compensation study, it will cost the District an additional $108,000 in FY 2024-25 in salaries and benefits and an additional $443,000 by FY 2028-29. Salaries and Benefits Variance - Current vs Proposed Fiscal Year 2024-25 2025-26 2026-27 2027-28 2028-29 Regular Salaries $ 51,000 $ 95,000 $ 155,000 $ 190,000 $ 209,000 Part-Time Salaries 1,000 -3,000 4,000 4,000 Swr Maint Reg Salaries 46,000 92,000 119,000 151,000 180,000 Total Regular Salaries 98,000 187,000 277,000 345,000 393,000 Medicare - Employer -1,000 2,000 4,000 2,000 Medicare - Swr Maint ER 1,000 2,000 2,000 2,000 3,000 Total Medicare 1,000 3,000 4,000 6,000 5,000 PERS - Employer 4,000 8,000 15,000 17,000 19,000 PERS - Swr Maint ER 4,000 9,000 12,000 15,000 17,000 PERS - Employee -2,000 -1,000 1,000 PERS - Swr Maint EE -2,000 3,000 3,000 4,000 Total PERS 8,000 21,000 30,000 36,000 41,000 Deferred Medical - RHS 1,000 1,000 2,000 2,000 2,000 Swr Maint RHS -1,000 1,000 1,000 2,000 Total RHS 1,000 2,000 3,000 3,000 4,000 Total Salaries & Benefits$ 108,000 $ 213,000$ 314,000 $ 390,000 $ 443,000 Change in %3.4%6.3%8.7%10.1%10.9% The table below shows the comparison between the adopted budget for employee salaries and benefits (CalPERS, Medicare and RHS accounts) and the adjusted COLA from 5% to a 3.4% plus the proposed salary adjustments from the Class and Comp Study for FY 2024-25. As stated in the staff report May 14, 2024 Study Session report, if the Board approves the reallocation of positions, the board will need to appropriate to the regular salary and benefits accounts. This is due to the new$29,000 Wastewater Maintenance Lead Worker classification; the amended job classification title from Management Analyst II to Senior Management Analyst for two employees; the amended job classification title from Administrative Assistant I to Management Analyst I; the amended job classification title from SCADA Technician/Interim Supervisor to Wastewater Supervisor; the amended job classification title from Wastewater Maintenance Worker III/Interim Supervisor to Wastewater Supervisor; and the adjustment to bring District classifications into the recommended salary ranges. Budget Class & Comp Study Cost of Living Adjustment 5%3.4%Variance Regular Salaries $ 1,823,000 $ 1,850,000 $ 27,000 Part-Time Salaries 56,000 56,000 - Swr Maint Reg Salaries 963,000 963,000 - Total Regular Salaries 2,842,000 2,869,000 27,000 Medicare - Employer 32,000 32,000 - Medicare - Swr Maint ER 16,000 16,000 - Total Medicare 48,000 48,000 - PERS - Employer 199,000 201,000 2,000 PERS - Swr Maint ER 108,000 108,000 - PERS - Employee 15,000 14,000 (1,000) PERS - Swr Maint EE 22,000 22,000 - Total PERS 344,000 345,000 1,000 Deferred Medical - RHS 19,000 20,000 1,000 Swr Maint RHS 10,000 10,000 - Total RHS 29,000 30,000 1,000 Total Salaries & Benefits$ 3,263,000 $ 3,292,000 $ 29,000 Cafeteria Plan - "Benefits Bucket" To increase the cafeteria allowance for the Employee + 2 tier from $1,700 per month to $1,875 per month ($175 increase per month) willcost the District an additional$11,000 each fiscal year starting FY 2024-25. The projected additional total cost for five years from FY 2024-25 to FY 2028-29 will be $55,000. This cost could increase or decrease if employees change his or her insurance coverage plan during the year. 1. 2. 3. This calculation is based on the current employees plan. There are five (5) employees selecting the Employee +2 plan and each employee currently receiving a cafeteria allowance of $1,700 a month. Longevity Pay Currently, employees who have reached the top of his/her salary range do not qualify for merit increases during annual performance evaluations even if they meet or exceed all performance expectations and three goals. Staff recommends implementing longevity pay for employees who are at the salary cap for their roles. Longevity pay rewards employees for their service tenure, encouraging them to stay with the organization longer. If the Board of Directors approves employee longevity pay, employees who have reached his/her salary range will receive 1% for each goal he/she has completed, up to 3% of the current annual salary. The table below shows the number of employees and the costs for the next five years for longevity pay with the assumptions: All staff will be in the same position for the next five years. All staff will achieve exceptional performance reviews and receive the maximum merit increase of 5% each year. 5% COLA each year. There will be one employee reaching his/her top salary range in FY 2025-26. If the employee exceeds all performance expectations and three goals, he/she will receive 3% of the annual salary range of $6,166. If the employee achieves only 1 goal, he/she will only receive 1% of the annual salary of $2,063. Proposed Longevity No. of Employees Fiscal Year 1%2%3%Top Range Salary 2024-25 ---0 2025-26 2,063 4,125 6,188 1 2026-27 13,196 26,393 39,589 7 2027-28 19,370 38,740 58,110 11 2028-29 22,864 45,728 68,592 13 Total Cost 57,493 114,986 172,479 Commercial Driver's License Pay To increase the driver's licensepay from $21.67 a month ($260 annual) to $43.33 a month ($520 annual) willcost an additional $1,900a year for seven employees who are currently receiving commercial driver's license pay. The projected additional total cost for five years from FY 2024-25 to FY 2028-29 will be $9,500. Standby Pay To increase the daily rate for thePrimary Standby Personfrom $50 to $75 willcost an additional $9,000a year.The projected additional total cost for five years from FY 2024-25 to FY 2028-29 will be $45,000. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 11, 2024, Study Session at District Headquarters and on District's website. Alternative Actions 1.That the Board of Directors direct staff to bring this item back for further discussion at the June 24, 2024, Board of Directors meeting. File Attachments Table 1 - Master List of Class Titles_.pdf (53 KB) Table 2 - Allocation List.pdf (43 KB) Table 3 - Costa Mesa SD Market Insurance Contributions Table 2024-05-03 (003).pdf (117 KB) Attachment D - Total Compensation Survey DRAFT 2024-05-03.pdf (318 KB) Attachment E - CMSD Other Benefits 2024-05-08.pdf (121 KB) Attachment F -CMSD Leave Benefits 2024-05-08 .pdf (116 KB) Attachment G - Consumer Price Index, Los Angeles area February 2024 _ Western Information Office _ U.S. Bureau of Labor Statistics.pdf (572 KB) Attachment H - Draft Job Descriptions.zip (4,182 KB) Attachment A - CMSD Labor Market Salary Survey - 2024-01.pdf (171 KB) Attachment B - CMSD Salary Range Recommendations DRAFT 2024-04-25.pdf (24 KB) Attachment C - 2024-25 Recommended Salary Schedule .pdf (180 KB) C. ITEMS OF STUDY Subject :4. Receive and File Legislative Report Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Discussion, Receive and File Goals :6.6 Administrative Management - Stay informed of Federal and State legislation Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: June 11, 2024 Subject: Receive and File Legislative Report Summary The Legislative Report provides the Board of Directors with analyses of measures at the state and congressional levelsthat are of interest to the District. On July 22, 2010, the Board of Directors gave authority to the President to write support and/or opposition letters on behalf of the Board if that position has been taken by an agency of which the District is a member. For all other bills, staff recommendations for formal District positions on legislation will be agendized and presented for Board action at their regular Board of Directors meetings. When the Board takes formal action on a piece of legislation, the President will advocate the support or opposition of individual bills as approved by the Board. Recommendation That the Board of Directors receive and file the Legislative Report. Analysis The attached Congressional and State Legislative Reports contain status updates on the District's bills of interest. Below is a list of bills that are described in the attached reports: CONGRESS SUPPORT: None OPPOSE: None WATCH: HR 250 - Clean Water SRF Parity Act HR 490 - Federal Infrastructure Bank Act of 2023 HR 651 - COMPOST Act HR 652 - Zero Food Waste Act HR 1729 - Water Affordability, Transparency, Equity, and Reliability Act of 2023 HR 2964 - WIPPES Act HR 3167 - Clean Water Allotment Modernization Act of 2023 HR 4040 - Recycling and Composting Accountability Act HR 4217 - Secure E-Waste Export and Recycling Act HR 5564 - REDUCE Act of 2023 HR 6053 - Break Free From Plastic Pollution Act of 2023 HR 6159 - Recycling Infrastructure and Accessibility Act of 2023 HR 7194 - PFAS Accountability Act of 2024 HR 7944 - Water Systems PFAS Liability Protection Act HR 8032 - Low-Income Household Water Assistance Program Establishment Act HR 8087 - Solid Waste Infrastructure for Recycling Grant Program Reauthorization Act S 115 - Clean Water Allotment Modernization Act of 2023 S 177 - Zero Food Waste Act S 179 - COMPOST Act S 938 - Water Affordability, Transparency, Equity, and Reliability Act of 2023 S 1189 - Recycling Infrastructure and Accessibility Act of 2023 S 1194 - Recycling and Composting Accountability Act S 1350 - WIPPES Act S 1429 - Resource Management PFAS Liability Protection Act of 2023 S 1430 - Water Systems PFAS Liability Protection Act S 2337 - Plastic Pellet Free Waters Act S 2844 - REDUCE Act of 2023 S 3127 - Break Free From Plastic Pollution Act of 2023 S 3146 - Reduce Food Loss and Waste Act S 3725 - PFAS Accountability Act of 2024 S 3830 - Low-Income Household Water Assistance Program Establishment Act CA STATE LEGISLATURE SUPPORT: None OPPOSE: None WATCH: AB 453 - District-based elections AB 457 - Beverage containers: recycling: redemption payment and refund value AB 805 - Sewer service: disadvantaged communities AB 817 - Open meetings: teleconferencing: subsidiary body AB 1820 - Housing development projects: applications: fees and exactions AB 2095 - Publication: newspapers of general circulation AB 2236 - Solid waste: reusable grocery bags: standards: plastic film prohibition AB 2257 - Local government: property-related water and sewer fees and assessments: remedies AB 2302 - Open meetings: local agencies: teleconferences AB 2514 - Solid waste: organic waste: diversion: hydrogen: biomethane AB 2533 - Accessory dwelling units: junior accessory dwelling units: unpermitted developments AB 2631 - Local agencies: ethics training AB 2715 - Ralph M. Brown Act: closed sessions AB 2761 - Product safety: plastic packaging: Reducing Toxics in Packaging Act SB 251 - Candidates statements: false statements SB 937 - Development projects: permits and other entitlements: fees and charges SB 972 - Methane emissions: organic waste: landfills SB 1034 - California Public Records Act: state of emergency SB 1045 - Composting facilities: zoning SB 1053 - Solid waste: reusable grocery bags: standards: plastic film prohibition SB 1072 - Local government: Proposition 218: remedies SB 1143 - Household hazardous waste: producer responsibility SB 1164 - Property taxation: new construction exclusion: accessory dwelling units SB 1210 - New housing construction: electrical, gas, sewer, and water service: service connection information SB 1266 - Product safety: bisphenol Research for this legislative report is sourced fromthe and websites, as well asCalifornia Legislature Congress legislative analyses compiled by various individuals, organizations, and agencies, including the National Special District Coalition, California Special Districts Association, California Association of Sanitation Agencies, CalRecycle, Californians Against Waste, Orange County Sanitation District, and the websites of the District's state representatives. Important Upcoming Dates on the California Legislative Calendar: June 27 Last day for a legislative measure to qualify for the Nov. 5 General Election ballot. July 3 Last day for policy committees to meet and reports bills.Summer Recess begins upon adjournment, provided Budget Bill has been passed. August 5 Legislature reconvenes from Summer Recess. August 16 Last day for fiscal committees to meet and report bills. August 23 Last day to amend bills on the Floor. August 31 Last day for each house to pass bills. Final recess begins upon adjournment. September 30 Last day for Governor to sign or veto bills. Legal Review Not applicable Environmental Review Consideration of pending legislation is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 11, 2024Board of Directors Study Sessionmeeting held at District headquarters located at 290 Paularino Avenue in Costa Mesa and posted on the Districts website. Alternative Actions 1. Direct staff to report back with more information. File Attachments June 2024 - Legislative Analysis - Congressional.pdf (152 KB) June 2024 - Legislative Analysis - State.pdf (153 KB) C. ITEMS OF STUDY Subject :5. Consider Amending Travel Policy by Allowing the General Manager to Approve Out of State Traveling in Nevada and Arizona Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Discussion Goals :7.0 Human Resources Management 7.4 Human Resources Management - Provide opportunities to improve individual skills, knowledge, and leadership through professional development Public Content To: Board of Directors From: Scott Carroll, General Manager Date: June 11, 2024 Subject: Consider Amending Travel Policy by Allowing the General Manager to Approve Out of State Traveling in Nevada and Arizona Summary Section 3.02.070 of CMSD's Operations Code states: "No staff person or person other than a Board member shall travel out of state for conference, meetings, seminars or related matters without prior Board approval." Staff is recommending Section 3.02.070 be amended to allow the general manager to approve out of state traveling in Nevada and Arizona. Traveling to all other states would still require Board approval. Staff is also recommending amending Section 3.01.090 of the Operations Code regarding Board of Directors traveling out of the state because it conflicts with Section 3.02.070. Section 3.01.090 states" "No Board member shall incur such expense outside the state without prior Board approval. Staff is recommending removing this sentence from Section 3.01.090. Recommendation That the Board of Directors discuss staff's recommendations and then direct staff to bring this item to the Citizens Advisory Committee for their review and recommendation. Analysis Many professional organizations are electing to have their annual conferences in Nevada. The following associations have had their conferences in Las Vegas. Tri-State Seminar (wastewater) Springbook (financial software for governments) Society in HR Management (SHRM) WasteExpo (solid waste) National Society of Professional Engineers (NSPE) In addition, many technical wastewater training seminars are available in Laughlin/Bullhead City and Reno like the California- Nevada American Water Works Association (AWWA) Section Annual Conference in Reno on Oct 21-24, 2024. Below are a list of professional organizations that had their annual conference in Phoenix, Arizona: Solid Waste Association of North America (SWANA) American Public Works Association (APWA) International City/County Management Association (ICMA) Water Infrastructure Conference Allowing the general manager to approve out of state traveling to Nevada and Arizona will improve operational efficiencies. Legal Review Not applicable at this time. District Counsel will review proposed ordinance to amending CMSD Operations Code. Environmental Review Consideration for amending district polices is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities. Financial Review There are no financial impacts to the district. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 11, 2024Board of Directors Study Sessionmeeting held at District headquarters located at 290 Paularino Avenue in Costa Mesa and posted on the Districts website. Alternative Actions 1. Do not consider amending travel policy. D. CLOSING ITEMS Subject :1. Oral Communications and Director Comments Meeting :Jun 11, 2024 - Board of Directors Study Session Type : D. CLOSING ITEMS Subject :2. Adjournment Meeting :Jun 11, 2024 - Board of Directors Study Session Type :Procedural Public Content The next Study Session of the Costa Mesa Sanitary District Board of Directors will be held at 8:00 a.m. on Tuesday, July 9, 2024 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.